CBA, Leading Financial Groups Call On CFPB To Rescind Changes To UDAAP Exam Manual

June 29, 2022

In a new white paper sent today to the Consumer Financial Protection Bureau (CFPB), the Consumer Bankers Association (CBA) and other leading financial groups called on the Bureau to rescind recent changes made to the Unfair, Deceptive, or Abusive Acts or Practices (UDAAPs) examination manual, an enormous self-expansion of the agency’s authority that stands contrary to law and the intent of Congress.

In the joint white paper entitled Unfairness and Discrimination: Examining the CFPB’s Conflation of Distinct Statutory Concepts, the groups stated that the Bureau’s recent expansion of fair lending laws may impede banks’ ability to deliver valued products and services for the millions of Americans they serve.

“Banks support fair, objective, and transparent enforcement of civil rights and fair lending laws. However, […] the CFPB’s action has created significant uncertainty in the financial marketplace to the detriment of consumers and banks alike, and it raises profound substantive and procedural legal concerns.”

As the groups went on to say, revisions to the UDAAP exam manual were clearly taken without legislative authority, may be subject to legal challenges, and must be immediately rescinded:

“Congress did not authorize or intend for the CFPB to ‘fill gaps’ between the clearly articulated boundaries of antidiscrimination statutes with its UDAAP authority. […] Such sweeping changes that alter the legal duties of so many are the proper province of Congress, not of independent regulatory agencies.”

To read the full white paper commissioned on behalf of CBA, American Bankers Association (ABA), Independent Community Bankers of America (ICBA), and the U.S. Chamber of Commerce, click HERE.


In a letter sent to CFPB Director Chopra ahead of his April semi-annual report to Congress, CBA outlined several key priorities for the Bureau to consider, including urging policymakers to follow the APA process and solicit public input into the proposed changes to the UDAAP manual. To learn more, click HERE.